Share this story

US Sen. John Thune (R-S.D.) yesterday blasted the Federal Communications Commission, saying it has failed to prevent budget cuts in funding for rural broadband.

"It has been more than a year since Chairman [Ajit] Pai" and fellow commissioners appeared before the Senate Commerce Committee "and committed to conducting a thorough economic analysis of the impact of USF [Universal Service Fund] funding cuts on broadband deployment in rural areas before allowing any further reduction," Thune said.

But Pai's FCC has failed to keep that promise, Thune said while delivering a statement at a hearing on rural broadband. Thune, the Commerce Committee chairman, continued:

Since that time, however, the cuts resulting from the FCC's budget control mechanism have increased by almost 25 percent. 25 percent!

There has been no economic analysis of what these cuts are doing to rural America—what they are doing to rural jobs, rural economic development, and the ability to live and learn, work, and play in communities like Pierre, South Dakota or Ocean Pointe, Hawaii; Yankton, South Dakota or Yakima, Washington.

The FCC has not conducted an analysis of what insufficient and unpredictable funding is doing to the companies trying to deploy broadband under some of the most difficult circumstances in America. This is simply unacceptable.

"These cuts could cause providers to halt or cancel broadband buildout, reducing the availability of broadband throughout rural America," Thune also said. "This could also cause an increase to the cost of service to those who already receive service, putting at risk investments already made."

Thune and other Republican lawmakers have generally been strong supporters of Pai's deregulatory policies.

Budget limits hinder deployment

Pai says he is planning changes that will fix the budget shortfall, but it's not clear why his FCC hasn't done the economic analysis Thune referred to. As chairman, Pai has promised to "strengthen the role of economics at the FCC."

The cuts Thune complained about have affected the USF's multi-billion-dollar High Cost program, also known as the Connect America Fund, which gives money to carriers to deploy broadband in areas without it. The FCC instituted a new budget control mechanism in 2016 under then-Chairman Tom Wheeler. The mechanism is apparently having unwelcome effects that Thune says Pai has not stopped.

The program budget "has remained static at 2011 levels," and "the current budget limits are hindering rural broadband deployment and harming consumers," Thune and other South Dakota lawmakers wrote in a letter to Pai on Wednesday. In South Dakota, carriers face an $11 million cut over 12 months unless the FCC takes action, they wrote.

Minnesota carriers are facing a $7.6 million funding cut over 12 months, Sen. Amy Klobuchar (D-Minn.) said at the hearing. She described constituents who lack proper telecom access, including a doctor who has to go to a McDonald's parking lot to use Wi-Fi for emergency calls because he has no signal at home. "This shouldn't be happening in the United States of America in the year 2018," she said.

FCC data shows that more than 24 million Americans lack access to high-speed broadband at home, Klobuchar also noted.

Pai deflects blame, promises fix

"Chairman Thune is right that the last Administration's budget control mechanism has stymied efforts to close the digital divide in rural America," Pai's spokesperson said.

But Pai has been the FCC chairman since January 2017, and his spokesperson's statement did not address Thune's criticism that the FCC failed to do any economic analysis of the cuts over the past year-plus. We asked Pai's office for a direct response to Thune's criticism and will update this story if we get a response.

The Pai spokesperson also told Multichannel News that "Chairman Pai led his colleagues earlier this year to devote an additional $500 million to small, rural carriers that serve their communities."

Further Reading

That FCC order included "$180 million in one-time funding to mitigate the effect of the budget control mechanism for the current funding year adopted by the prior Commission," Pai said at the time.

The problem could be fixed for good within months. Pai's spokesperson told Multichannel News that later this year, he plans to establish a "sufficient and predictable budget so that those in rural communities are not left behind any longer."

Separately, Pai has repeatedly imposed new limits on Lifeline, another Universal Service Fund program that gives telecom subsidies to poor people. The Universal Service Fund is paid for by US residents through surcharges on phone bills.

Thune's criticism of the FCC was not limited to the Universal Service Fund. He also took aim at the FCC's broadband mapping data, which is widely known to be inaccurate.

While senators regularly hold FCC oversight hearings with all commissioners present, the witnesses at yesterday's hearing were from broadband providers and not the FCC. Pai thus didn't have a chance to respond directly to Thune at the hearing.

UPDATE: The FCC responded to Ars but just gave us the same statement given to Multichannel News and said that "the Chairman hopes to resolve the budget issue by the end of the year." The FCC order that added $500 million of funding also asked the public for comment "on whether the budget should be adjusted, among other issues," the FCC said.

Gee, look at that. GOP senators and House members are finally starting to realize how critical Internet access is to rural folks. The folks who tend to be Republican, but are seeing more and more neglectful treatment from the regulatory folks the GOP has been pushing into office. Getting more problematic now that the GOP controls the legislative and executive branches of government, and can not blame the inadequacies and failures of regulation and legislation on the Democrats due to that control.

There's a reason we regulate the telecom/ISP industry here (or did at one time before Pai was put in charge). That's due to the extraordinarily limited competition due to high costs for infrastructure (which would be less problematic if we'd just force local loop unbundling on every ISP and stop hindering muni-broadband).

Gee, look at that. GOP senators and House members are finally starting to realize how critical Internet access is to rural folks. The folks who tend to be Republican, but are seeing more and more neglectful treatment from the regulatory folks the GOP has been pushing into office. Getting more problematic now that the GOP controls the legislative and executive branches of government, and can not blame the inadequacies and failures of regulation and legislation on the Democrats due to that control.

There's a reason we regulate the telecom/ISP industry here (or did at one time before Pai was put in charge). That's due to the extraordinarily limited competition due to high costs for infrastructure (which would be less problematic if we'd just force local loop unbundling on every ISP and stop hindering muni-broadband).

Of course, it's not like Republicans actually give a shit about people in rural areas. They care about them only insofar as what they need to do to dupe them into, yet again, voting against their interests.

Thune is 100% on board with Pai's war on Net Neutrality and 100% on board with every vile plan this administration has enacted. Don't be tricked, this is an act.

They've gotta blame someone. Look folks, I am doing what I can to help you, you see. It was the previous administration, Clinton, Sorros, that guy running rogue at the FCC who I don't have any control over. Can't be my own polices that are screwing you, my constituents in to the ground.

Pai says he is planning changes that will fix the budget shortfall, but it's not clear why his FCC hasn't done the economic analysis Thune referred to. As chairman, Pai has promised to "strengthen the role of economics at the FCC."

I think he's delivered on his promise. Your mistake is assuming he meant the economics would be done by the FCC. Pai is satisfied with the answers he's getting from telecom lobbyists, why should the FCC waste time replicating their work?

Fiber really isn't as expensive as these people make it out to be. There is an ISP in Vermont that ran fiber in mountainous areas by mule and were able to provide reliable and cheap internet to rural communities. This is just a greed/laziness problem not an actual expense problem.

Of course, it's my hope that he continues to fuck over the people who elected the people who let these clowns into power. rural people deserve the teeming they're getting.

republicans vote on November 7

Why? Even in the most red districts, something like 1 in 5 didn't vote for these criminals. As an average across most of the rural red areas, probably 2 in 5 didn't vote for the criminals. Why do those people who didn't vote for them deserve to be punished also?

Of course, it's my hope that he continues to fuck over the people who elected the people who let these clowns into power. rural people deserve the teeming they're getting.

republicans vote on November 7

Why? Even in the most red districts, something like 1 in 5 didn't vote for these criminals. As an average across most of the rural red areas, probably 2 in 5 didn't vote for the criminals. Why do those people who didn't vote for them deserve to be punished also?

I'd say that many of those people who did not vote could have. They should have known how important this election was. No disrespect to those who genuinely could not vote, but if you just sat this one out, fuck you, sincerely.

Gee, look at that. GOP senators and House members are finally starting to realize how critical Internet access is to rural folks. The folks who tend to be Republican, but are seeing more and more neglectful treatment from the regulatory folks the GOP has been pushing into office. Getting more problematic now that the GOP controls the legislative and executive branches of government, and can not blame the inadequacies and failures of regulation and legislation on the Democrats due to that control.

There's a reason we regulate the telecom/ISP industry here (or did at one time before Pai was put in charge). That's due to the extraordinarily limited competition due to high costs for infrastructure (which would be less problematic if we'd just force local loop unbundling on every ISP and stop hindering muni-broadband).

Finally? My junior senator has been beating that drum for years, going back to the previous administration.

As someone who grew up in *very* rural America, the problem is a lot more complicated than that. That's probably a whole separate topic onto itself though.

Actually it was mostly suburbs gerrymandered into blocking out the voice of cities.

So gerrymandered suburbs turned places like WV, historically blue and 100% union into Trump country seemingly overnight? This is why these pithy retorts can never explain problems like these. Coastal residents and what you call "rural people" keep talking past each other without trying to understand both sides of the issue.

West Virginia last supported a Democrat for President in 1996. That's 22 years ago, not "overnight".

While I'd love to believe he actually is concerned about rural broadband access, given the fact that he has supported Pai, this is more likely your standard rep/senator trying to keep gov funds flowing to their area. Simply "you are cutting government handouts to businesses in my state who fund my reelection so I'm gonna cite poor rural folk as the victim.".

Circus.Doesn't matter if this or that GOP senator will play hardline for folks to "see, we are doing something" if ultimately all the current policies and proposals, including some that are putting a whole ton of taxpayer money in the same situation, passes without questioning.

The same thing will happen with 5G, you can have zero doubts about it. If they know it already didn't work, and all they are doing about it is calling Ajit Pai to ask about stupid crap he should've done but he didn't because he's a corporate shill, it ammounts to nothing. Stop playing theatrics assholes, you are fooling no one.

The absolute minimum Pai deserves is to be out of the job. But more adequately, he should be in jail for selling US citizens' rights wholesale. It's pure corruption, I dunno what that guy is still doing there in the first place.

Forgetting the Amaze Balls of the politics and voting against one’s own self interest for a second.

Why doesn’t the government just contract with Open Signal or one of the other entities and produce their own maps? Everyone knows what comes out of the telcos is bullshit so why do we even have them as a part of the discussion. Build our own and be done with it.

You don't need to wait for it to happen: Telesat is in operation. Our plans were upgraded as of October 1; check with your own ISP.

Starlink is not up yet. If it works it'll be much better than any geostationary service can be. On about the same timeframe we might have fibre up here; it's being laid up the Eastern shore of Hudson Bay right now. With any luck it'll get extended.

Forgetting the Amaze Balls of the politics and voting against one’s own self interest for a second.

Why doesn’t the government just contract with Open Signal or one of the other entities and produce their own maps? Everyone knows what comes out of the telcos is bullshit so why do we even have them as a part of the discussion. Build our own and be done with it.

Probably because Pai was literally a top attorney for Verizon in the recent past. The party that currently controls the House, Senate, Supreme Court, and White House believes in nothing more than corporate profit and human suffering.